2014 Third Quarter sales

Transcription

1 2014 Third Quarter sales Basel: October 16, 2014

2 Safe harbor This document contains forward-looking statements, which can be identified by terminology such as expect, would, will, potential, plans, prospects, estimated, aiming, on track and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract there for. 2

3 Third quarter 2014 overview Growth in all regions Integrated sales: 3% CER* Deliberate reduction in solo glyphosate sales to improve profitability - growth ex-glyphosate +5% Q3 sales in Latin America robust despite dry conditions Upturn in innovation: ELATUS launch, HYVIDO success * At constant exchange rates 3

4 Third quarter and nine months sales Third quarter sales Sales 2%* higher at $3.0bn Reported sales 2% higher Integrated sales up 3%* - volume unchanged, price +3% Nine months sales Sales 3%* higher at $11.5bn Reported sales 2% higher Integrated sales up 4%* - volume unchanged, price +4% Integrated sales exclude Lawn and Garden * At constant exchange rates 4

5 Third quarter 2014: integrated business update by region North America: +1% Strong pre-season selective herbicide sales: crop protection sales up 7% Canada affected by flooding and glyphosate reduction Seed sales lower: Dulcinea divestment Europe, Africa & Middle East: +3% Growth in oilseed rape and hybrid barley seeds Strong growth in AME, SE Europe CIS: sales down in low season Latin America: +3% Sales +8% ex-glyphosate LAN and Brazilian sugar cane affected by drought Strong demand for ELATUS Asia Pacific: +3% Broad-based growth in emerging markets Fungicides and insecticides strong Low weed and disease pressure in Australasia Growth at constant exchange rates 5

6 Currencies: full year expectation unchanged End quarter % change vs. dollar indexed to December 31, 2011 Further emerging market currency weakness in Q3 Ukraine price recovery in 2014; Russia in 2015 Brazil sales largely dollarized 2014 full year EBITDA impact - ~100 bps margin reduction - net of price recovery $(100) (120)m * Sales-weighted basket of emerging market currencies excl. BRL, RUB, UAH 6

7 Crop protection: third quarter sales up 3% Strong demand for CALLISTO on US corn; lower sales in Brazil TOUCHDOWN volumes reduced, double-digit growth in GRAMOXONE ELATUS launch in Brazil; continued ramp-up in Bolivia and Paraguay Heavy caterpillar pressure in soybean and corn in Brazil; DURIVO up by >50% Lower sales to other seed companies; CRUISER suspension in EU Chart excludes Other : Q3 $50m; YTD $123m Growth at constant exchange rates 7

8 Glyphosate: strategic reduction of solo, focus on mixtures Weed resistance prevalent in USA, spreading in Latin America Grower need: integrated weed control and resistance management solutions - focus on mixtures and early season weed management Strategic reduction of solo; sales impact starting in ~$80m first 9 months - ~$150m full year * CAGR at constant exchange rates 8

9 Crop Protection: new products Gaining recognition in USA for soybean cyst nematode control Roll-out in Argentina progressing Strong growth in all regions, led by Canada and USA Continued momentum: sales in Europe up >60% % at constant exchange rates Brazil launch on track, expansion in Bolivia and Paraguay 9

10 ELATUS : launch on track Securing reliably higher yields for soybean growers Full scale trial data released - ELATUS performance advantage confirmed in 13/14 First 9 months: - $210m delivered - $75m consumed On track for $300m sales target Expected Solatenol approvals: 2015: Corn, Specialty crops in USA 2016: Cereals in EU Source: EMBRAPA Circular Technica 99, 103; Syngenta analysis 10

11 Seeds: third quarter sales up 5%* Corn sales down in line with acreage. Soybean growth momentum continued in Q3 Strong HYVIDO seeds sales in Europe; sales up >30% Excluding Dulcinea divestment: Q3 sales up 9%, first 9 months up 6% Growth at constant exchange rates * Adjusted for Dulcinea divestment 11

12 Hybrid barley transforming feed production 2014 continued momentum Successful launch in Iberia Cash Back Yield Guarantee supporting adoption Seeds rates down by 25% MODDUS ensures robust crop Next generation disease control * Not yet registered 12

13 Accelerating operational leverage: main initiatives Seeds production cost optimization Procurement and manufacturing fixed cost reductions Rationalization of logistics and function costs Streamlined marketing Field force effectiveness Integrated demand and production management Simplified management structure Field development rationalization Infrastructure and operational savings 13

14 Outlook Strong Q4 outlook in Latin America Full year integrated sales growth target maintained at 6% Key objective is to improve profitability EBITDA margin below 2013 level: currency, mix On track to deliver operational leverage savings in

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